I am unsure how to book an agenda book/organizer that was purchased for our business. Normally I book office/organizational expenses (notebooks, printer ink, etc.) as "Office Expenses" but the cost of this particular organizer makes me feel like it should be a fixed asset.

  • how's that an asset? – littleadv Dec 5 '11 at 8:29
  • @littleadv It can VERY easily be converted to cash. – Brian David Berman Dec 5 '11 at 14:20

If your business pays taxes, it is in your best interest to expense it. Even if you don't pay taxes, setting your capitalization policy low enough to capitalize an office organizer (even a nice one) will give you headaches when your business grows larger.

  • Could you be more specific about "expense it"? What kind of booking entries would you suggest? – Brian David Berman Dec 5 '11 at 20:13
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    How specific are you talking? I don't know what accounting software you're using, but it's probably best to book this transaction through your Purchases Journal and code it to an expense account like "Office Supplies" or something. I don't know what you're working with, so that's the best I can give you. The general idea is to debit an expense account ("Office Supplies") and credit "Cash" or "A/P". Ignore the previous sentence if you don't speak accounting. – Daniel Dec 6 '11 at 0:44

I cannot imagine an organizer being worth enough to consider depreciating the expense over a period of time greater than one year. Also, once you write in an organizer, it's pretty much worthless to anyone else.

Talk to your accountant if you'd like, but I cannot see how you would classify a fancy organizer as a fixed asset.

  • I understand "writing in it" may appear to make it worthless afterwards, but high-end organizers have removable inserts that are purchased for it every year. I know it has "value" to other people because they sell on eBay for has high as 10% off it's retail price. It can VERY easily be converted to cash. – Brian David Berman Dec 5 '11 at 14:20

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